After an optimistic 2021 for the Philippine smartphone market, Counterpoint Research has reported that overall shipments are down by 5% YoY and 13% as compared to 2021 Q1. While those aren’t industry-shifting numbers, it will still have an inevitable impact on a gigantic industry such as this.
This was reportedly caused by shortages of important components and COVID-19 restrictions in other countries. However, the decline could have been even larger if not for manufacturers placing some stopgaps in position. This includes an already-existing stockpile of new smartphone launches ready for sale from giants such as Samsung, realme, and others. Inevitably, this leads to some shortages in a relative sense at least.
Counterpoint was able to find top 3 Philippine smartphone market shareholders as Samsung, realme, and OPPO at 26.4%, 21%, and 15.4% respectively. Xiaomi had the highest YoY increase due to its Redmi brand.
Research Analyst Akash Jatwala also attributed increases to the local mobile gaming landscape. People are beginning to see the platform as a viable alternative to PC and console gaming rather than some niche alternative. Games that could be rated as triple-A titles (CoD Mobile, Genshin Impact, Apex Legends Mobile) made a rush to fame. This perception on the scene as well as the hype around it only rose to new heights when the SIBOL national e-sports team found great success in the 2022 SEA Games.
Due to these events, gaming-centric smartphones such as the ASUS ROG Phones, Xiaomi Black Shark Series, and others have seen increased popularity leading to demand. Budget mid-rangers with graphical capabilities have also become non-negotiables for aspiring gamers on a budget. These are trends that showed mild signs in the past but never to this extent.
As of now, we believe this decline isn’t really a cause for concern. There is a definite safety margin within the Philippine supply in the smartphone market that prices won’t spiral out of control. We believe that the longevity of a smartphone in the 2020s is much longer than a decade ago due to the overall improvement of hardware and more software updates. Despite the ongoing supply issues, devices are here to stay in full power. That is something us consumers should be happy about since intense competition leads to innovation.
We’ll keep you posted if any of these happenings is making a noticeable impact on the industry. Otherwise, life goes on!
